Location: Oregon County, MO | Metro: Douglas County, MO
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $134,467 | 0.75% | D |
| 3BR | $1,370 | $222,451 | 0.62% | D |
| 4BR | $1,690 | $301,926 | 0.56% | F |
U.S. Census Bureau data (2024)
When considering whether to purchase a property in ZIP code 65775 (West Plains, MO) for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $930 cover the debt service on a property priced at $221,736?
If your goal is to ensure that the FMR can cover the debt service, you must first calculate the expected monthly mortgage payment. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly principal and interest payment would be approximately $1,075. At an FMR of $930, the answer is No. The FMR does not cover the debt service.
2) Is the market rent of $814 (Census ACS) above, at, or below the FMR?
The market rent of $814 is below the FMR of $930. This suggests that Section 8 tenants could potentially pay more than what the market dictates, making the program attractive for landlords who want to avoid dealing with market fluctuations.
3) Are 31.8% of residents renters and the 67-day Days on Market (DOM) sufficient to meet demand?
The rental rate of 31.8% indicates a moderate demand for rental properties. Combined with a DOM of 67 days, which is relatively short, it shows that properties are being rented out fairly quickly. However, the answer is It Depends. While the DOM is favorable, the percentage of renters is only moderate. To make a final decision, consider the following:
If you can secure a property below the average price of $221,736, the FMR might cover the debt service. This would make the investment viable.
If you are willing to accept a lower return on investment due to the FMR not covering the debt service, the stable demand for rentals could still make this a worthwhile investment.
If you are looking for high-demand areas where rental properties are in constant need, West Plains might not be the best choice. However, if stability and manageable vacancy rates are your priority, then the area meets these criteria.
In conclusion, purchasing a property in ZIP 65775 for Section 8 investment is not advisable if your primary concern is covering debt service with FMR. However, if you can find a more affordable property or are willing to accept a lower ROI, the area's favorable DOM and moderate rental demand make it a reasonable consideration.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.